The Ministry of Transport clarifies the $930 million loan from the World Bank for comprehensive railway development.
The Ministry of Transport clarifies the $930 million loan from the World Bank for comprehensive railway development.
2025-06-27
The Ministry of Transport announced on Friday that it had obtained World Bank approval to finance a $930 million loan to rehabilitate the existing railway line, while pointing to a plan to connect Iraq’s railways to the ports of Faw and Umm Qasr, all the way to Turkey. The Ministry of Transport’s media director, Maitham Al-Safi, told the official agency that “the maritime railway connection plan that the ministry is working on under the supervision of Transport Minister Razzaq Muhaibis Al-Saadawi, includes linking the existing railways to the Grand Faw and Umm Qasr ports, towards the northern regions, all the way to Türkiye.”
He explained that “the plan represents a comprehensive government vision for operating the first phase of the Grand Faw Port project, which includes five docks, and that progress has reached very advanced levels.” He noted that “this approach contributes to achieving multimodal transportation goals, paves the way for linking Iraq to the European continent and strengthening its role as a regional logistics hub.”
He added that “the Development Road Project – Phase One is not limited to linking southern Iraq with its north, but rather serves as the foundation for the Strategic Development Road Project, the detailed designs of which have reached advanced stages.” He noted that “the project will provide multiple future connection lines to Europe, whether via the current road or across its three strategic phases.”
He also pointed out that “the strategic dimension of this plan is to transform Iraq into a hub for regional and international transport and trade,” noting that “the negotiations of the government committee, headed by the Minister of Planning and including a team from the Ministry of Transport, with the World Bank resulted in the bank’s approval to finance Iraq with a $930 million loan, allocated to rehabilitating the current railway line and upgrading the technical and administrative capabilities of the General Railways Company.”
He pointed out that “the loan will cover the modernization of the locomotive fleet, the renewal of maintenance workshops, and the development of infrastructure, in addition to providing technical support to enhance the efficiency of institutional performance and modernize rail transport systems within the framework of a comprehensive reform vision.”
He continued, “This project represents a qualitative leap in the transportation sector and enhances integration between maritime and rail transport, putting Iraq on the right track to achieving sustainable development and expanding its strategic role in international trade.”
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